Growth investments lead PE-VC inflows

Highlights

They surge 40% to $4.7 bn in Oct; Infra sector attracted the most at $1.8 bn via 9 deals, followed by tech, ($1.1 bn) and financial services ($470 mn)

Mumbai: India saw private equity/venture capitalist (PE/VC) investments worth $4.7 billion across 91 deals in October, a 40 per cent increase from September, a report showed on Wednesday. Credit investments were the leading deal type in October, followed by growth investments, according to the IVCA-EY monthly PE/VC roundup.

Vivek Soni, Partner and National Leader, Private Equity Services, EY, said:“October recorded $4.7 billion in PE/VC investments, four per cent higher than investments in October 2023 and 40 per cent higher than in September 2024. The number of deals in October was 21 per cent higher year-on-year.”

Credit investments were the highest deal type at $1.8 billion, followed by growth investments at $1.6 billion. From a sector point of view, infrastructure was the top sector in October 2024, recording $1.8 billion, followed by technology ($1.1 billion).

October recorded nine large deals (deals with value greater than $100 million), aggregating $3.3 billion, a 4 per cent decline in value from October 2023 ($3.4 billion across 11 deals) and 69 per cent higher than September 2023 ($2 billion across eight deals).

The largest deal of the month involved Temasek acquiring 18 per cent stake in VFS Global Services from Blackstone for $950 million.

PE/VC exits were at $1.1 billion across nine deals in October 2024, 40 per cent lower than in October 2023 ($1.9 bn). Secondary exits in October 2024 accounted for 96 per cent of all exits by value ($1.1 bn), said the report.

Pure-play PE/VC investments ($2.7 bn) declined by 19 per cent compared to October 2023 ($3.3 bn) and declined by 6 per cent compared to September ($2.9 bn).The last quarter of the year witnessed a strong start, with October PE/VC investments growing by 40 per cent compared to September.

From a sector point of view, infrastructure was the top sector in October, attracting $1.8 bn in PE/VC investments across nine deals, followed by technology ($1.1 billion) and financial services ($470 mn).